Is A Bearish Reversal Coming For Bitcoin? This Metric May Warn So
10 November 2023 - 6:00PM
NEWSBTC
The latest trend in the Bitcoin taker buy-sell ratio could suggest
a bearish reversal may be coming soon for the cryptocurrency.
Bitcoin Taker Buy Sell Ratio 100-Day EMA Has Encountered Resistance
An analyst in a CryptoQuant Quicktake post explained that the asset
may be heading towards a correction due to the taker buy-sell ratio
coming across strong resistance. The “taker buy sell ratio” is an
indicator that keeps track of the ratio between the Bitcoin taker
buy and taker sell volumes. When the value of this metric is
greater than 1, it means that the taker buy or the long volume is
greater than the sell volume right now. Such a trend implies that
the majority shares a bullish sentiment as the investors are
willing to pay a higher price for the asset. Related Reading:
Ethereum At $2,100: Why Path To $2,500 Is Now All Clear On the
other hand, values under the threshold suggest the dominance of a
bearish mentality in the sector, as the selling pressure is greater
than the current buying pressure. Now, here is a chart that shows
the trend in the 350-day moving average (MA) and 100-day
exponential MA (EMA) of the Bitcoin taker buy-sell ratio over the
past few years: Looks like the two metrics have crossed each other
recently | Source: CryptoQuant In the graph, the quant has
highlighted an interesting pattern that has repeated for these two
averages of the Bitcoin taker buy-sell ratio over the years. It
would appear that whenever the 100-day EMA has crossed above the
350-day MA, the cryptocurrency’s price has gone on to observe
bullish momentum shortly. On the other hand, the opposite type of
cross has usually been a bearish predictor for the asset. Besides
these two crossovers, the interaction of the 100-day EMA with the
1-mark has also been relevant to the coin. The line crossing above
the 1-mark, which serves as the boundary between the bullish and
bearish sentiment regions, has often meant a reversal for the
cryptocurrency. From the chart, it’s visible the bullish type of
crossover happened between the 100-day EMA and 350-day MA of the
Bitcoin taker buy sell ratio just recently, and what has followed
so far has been a sharp rally for the asset that has now taken it
to the $37,000 level. Related Reading: Polygon (MATIC) Jumps
Another 6% As Whales Show High Activity The 100-day EMA initially
continued its rise after the cross above the 350-day MA, but the
line has stopped around the 1-level, implying that it has been
finding resistance. A break above here would have naturally been
another bullish signal for Bitcoin, but as the line has been unable
to go beyond so far, rejection might take place instead. If such a
pattern forms, the asset might see a bearish reversal in the coming
days. BTC Price Once again, Bitcoin is challenging the $37,000
level after dipping below it during the past day. BTC has observed
further uplift in the last few days | Source: BTCUSD on TradingView
Featured image from Shutterstock.com, charts from TradingView.com,
CryptoQuant.com
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